Indian commercial vehicle and components manufacturer Asia MotorWorks (AMW) has put on hold its plans to enter the country's light commercial vehicle (LCV) segment. This decision has been attributed to a slowdown in the Indian automotive market following a series of interest rate hikes by the Reserve Bank of India (RBI).
AMW had intended to enter this segment with its 1.5-tonne Pug LCV. The company has decided to continue focussing on the medium and heavy CV (M&HCV) segment, as well as its entry into the bus segment.
"We have put our entry into the LCV segment on hold at present, even though we are going ahead with our plans to launch buses," A Ramasubramanian, president of Asia MotorWorks, told the Financial Chronicle.
The LCV market in India has been witnessing strong growth. According to the Society of Indian Automobile Manufacturers (SIAM), in the first four months of the current financial year (April-July 2011), domestic sales of LCVs rose by 25.6% year-on-year. Comparatively, the M&HCV segment posted a growth rate of 6.4%.
Beyond this inviting growth rate, however, OEMs such as Force Motors and Piaggio have reportedly had difficulties in securing significant market share, in a segment dominated by Tata Motors and Mahindra & Mahindra.
AMW's entry into the bus segment too will pitch the company against giants such as Tata Motors and Ashok Leyland, which dominate the mass-market bus segments, and Volvo Buses which leads the high-end multi-axle segment. According to the Financial Chronicle, the winding down of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) scheme has resulted in the domestic bus market slowing down considerably (+2.9% y-o-y in
AMW had intended to enter this segment with its 1.5-tonne Pug LCV. The company has decided to continue focussing on the medium and heavy CV (M&HCV) segment, as well as its entry into the bus segment.
"We have put our entry into the LCV segment on hold at present, even though we are going ahead with our plans to launch buses," A Ramasubramanian, president of Asia MotorWorks, told the Financial Chronicle.
The LCV market in India has been witnessing strong growth. According to the Society of Indian Automobile Manufacturers (SIAM), in the first four months of the current financial year (April-July 2011), domestic sales of LCVs rose by 25.6% year-on-year. Comparatively, the M&HCV segment posted a growth rate of 6.4%.
Beyond this inviting growth rate, however, OEMs such as Force Motors and Piaggio have reportedly had difficulties in securing significant market share, in a segment dominated by Tata Motors and Mahindra & Mahindra.
AMW's entry into the bus segment too will pitch the company against giants such as Tata Motors and Ashok Leyland, which dominate the mass-market bus segments, and Volvo Buses which leads the high-end multi-axle segment. According to the Financial Chronicle, the winding down of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) scheme has resulted in the domestic bus market slowing down considerably (+2.9% y-o-y in
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